The Dry Shipping Picture May Be Even Worse Than You Think

I want to recommend a new article on Seeking Alpha – the analysis shows our continuing belief this is a sector to watch NOT purchase.

Here is a sample from the article:

The supply glut continues to plague dry shipping –

. Too many ships are simply chasing too few cargoes. One Singapore broker bleakly stated, “The market is flat as a pancake. It’s going to be like this going forward – it’s hard to see a way out.” The rates, even despite the modest rise last week, continue to be below even operating costs for most ships especially for the large Capesize ships. Basic economics teaches us that should one day correct but when?

Chief Shipping Analyst at BIMCO, Peter Sands, stated last week,

“What we have seen in shipping in recent years and is going to experience more in future is the knock-on effect from China becoming a relatively more closed economy, driven forward by domestic demand rather the foreign demand like i.e. the US. In short this translates into a lower level of shipping demand going forward than what we got accustomed to during the past decades”